Worldcoin, through its developer Tools for Humanity Corporation, has agreed to halt its operations in Spain until at least the end of 2024. This decision comes in response to an ongoing investigation by the Spanish Agency for Data Protection (AEPD) into the company’s data collection and processing practices.
This pause reflects a broader scrutiny under which the Worldcoin project finds itself across various global jurisdictions.
The AEPD’s investigation is not isolated; similar concerns have been raised by data protection authorities in other countries, including Germany and Hong Kong.
These authorities are examining the extent and nature of Worldcoin’s biometric data collection, specifically the capture of iris and facial images, to create a universal digital identity.
European Investigations Intensify
According to the report, the Bayerische Landesamt für Datenschutzaufsicht (BayLDA) in Bavaria, Germany, is leading the European investigation. The BayLDA has indicated that their findings will soon conclude and expects to reach a decision that aligns with the requirements of all concerned European supervisory authorities.
This decision will determine Worldcoin’s future operations in Europe, particularly how the company handles the sensitive biometric data it collects.
In Spain, the AEPD had previously mandated a precautionary halt to Worldcoin’s data activities as early as March 2024, citing the need to safeguard personal data under the General Data Protection Regulation (GDPR).
Spain’s National Court supported this, prioritizing the protection of personal data over the company’s operational interests.
Worldcoin Technological And Operational Adjustments
In response to these regulatory challenges, Worldcoin has introduced several changes to its data handling practices. The company has open-sourced its biometric data system, incorporating secure multi-party computation (SMPC) technology.
This technology enhances data security by distributing encrypted parts of a secret across multiple parties, ensuring that no single entity can access the complete dataset. This measure aims to mitigate the risks of data breaches and increase the overall security of stored information.
Furthermore, the Worldcoin Foundation, in collaboration with technology experts from TACEO and Tools for Humanity, has developed this new implementation of SMPC to address scalability and cost issues.
This development is significant when the demand for biometric data processing capabilities is increasing globally.
Additionally, Worldcoin has improved its user interface to allow individuals to delete their old iris codes securely and introduced stringent controls to verify users’ ages and the ability to opt out of the iris scan.
Following the announcement of the operational halt in Spain, Worldcoin experienced only a minor pullback from its 24-hour high of $4.89. The asset is trading at $4.76, maintaining a modest increase of 0.7% over the past day.
Featured image created with DALL-E, chart from TradingView